The House Agriculture Committee held a hearing to review the Farm Credit System (FCS). Members of the committee heard from representatives of the Farm Credit Administration as well as representatives from institutions that provide credit. The hearing highlighted the century-long mission of FCS to provide credit to rural communities in both good times and bad, and it reviewed the overall health of the system.
Congress established the FCS in the Federal Farm Loan Act of 1916 at a time when credit was largely unavailable or unaffordable in rural areas, and lenders avoided agricultural loans due to their associated risks. The FCS was created to provide a permanent, reliable source of credit to American agriculture.
“Modern agriculture is far more complex than it was 100 years ago. With advances in agricultural technology, increasing global competition, rising input costs, and greater regulatory burdens, U.S. producers require more capital to keep their businesses afloat. That’s why it is so essential that farmers and ranchers across the country have access to reliable sources of credit. FCS has long played a crucial role in meeting that need, and I am confident that it will continue to do so for years to come,” said Agriculture Committee Chairman K. Michael Conaway.
Written testimony provided by the witnesses from today’s hearing is linked below. Click here for more information, including Chairman Conaway’s opening statement and the archived webcast.
Witness List:
Mr. Dallas P. Tonsager, Chairman and CEO, Farm Credit Administration, McLean, VA
Mr. Jeffery S. Hall, Member of the Board, Farm Credit Administration, McLean, VA
Mr. James Dodson, Chairman, Farm Credit Bank of Texas Board of Directors, Robstown, TX
Mr. Doug Stark, President and Chief Executive Officer, Farm Credit Services of-America, Omaha, NE
Mr. Tom Halverson, Chief Executive Officer, CoBank, Denver, CO